Not-for-Profit Accounting

Question 1

An arrangement whereby both a donor (or beneficiary) and a not-for-profit organization receivebenefits (usually charitable lead trusts and charitable remiander trusts)–general rule: not-for-profit will record revenues in amount equal to PV of anticipated receipts

Answer 1

Split-interest agreement

Question 2

A voluntary transfer of resources, or providing of personal services, to a charitable organization motivated by generosity

Answer 2

Contributions

Question 3

Resources that must be held in perpetuity

Answer 3

Permanently restricted resources

Question 4

Resourcess restricted to be:

1) used for a particular purpose
2) expended at a time in the future
3) invested for a period of time (one of them)

Answer 4

Temporarily restricted resources

Question 5

All resources that do not have restrictions by donors or grantors

Answer 5

Unrestricted resources

Question 6

The power of a non-for-profit to redirect the resources that it is being an agent or intermediary for; if it exists, the recipeitn would recognize contribution reveneu

Answer 6

Variance power

Question 7

When a not-for-profit organization has little or no discretion over the use of an asset, the transaction is classified as this

Answer 7

Agency transaction